A company received from a dealer who wishes to offer a new generator to power their industrial hoist for the replacement of their existing unit. The company wants to know how much they could afford to pay for another unit for the same purpose if the maney is worth 10%, Data as follows: Existing Generator A 25, 000.00 New Generator Investment Efficiency 85% Maintenance per year Salvage Value 800.00 0:00 10, 000.00 15, 000.00 FOR SALE Service Life 10 10

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Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.